A Life Settlement is a well regulated and viable option for senior Americans. Abacus has purchased over $5 billion in life insurance policies since 2004, with offers averaging 6 times the surrender value of a standard policy.
Below you will find a quick primer on what a Life Settlement is. However, we have also built an In-Depth Life Settlement Guide for those that want to deep dive into research on the industry. We are also always happy to answer your questions at 800-561-4148.
A life settlement is the sale of an existing life insurance policy to a licensed life settlement buyer for more than its cash surrender value, but less than its death benefit.
At Abacus, our goal is to become your trusted source for information about life settlements. By providing you with up-to-date knowledge, we hope to help you understand exactly what a life settlement is. We are committed to empowering policy owners with objective insight to help them make an informed decision regarding their insurance policy.
In terms of definition, a life settlement is a financial transaction where the owner of an unwanted life insurance policy transfers ownership and beneficiary rights to an institutional investment fund. In exchange for transferring ownership, the insured receives a cash settlement that can often be four times greater than the cash surrender value. A life settlement is not a loan, it is a one-time cash transaction that results in a full transfer of ownership in exchange for a lump sum. The money belongs entirely to the policy seller and can be spent at his or her discretion. Life Settlements can also be in the form of a paid-up death benefit.
Our goal at Abacus Life is to empower you with the OPTIONS and KNOWLEDGE necessary to make the best financial decision for your future. That means being more than a life insurance purchaser. Abacus Life is also an industry-leading source of knowledge for the life settlement space. Selling a life insurance policy can be a complicated decision. In fact, for many individuals, the only large asset they own is their home. We believe that just like selling any other piece of personal property, selling your life insurance policy should be well regulated and the process shouldn’t be shrouded in mystery. Whether you are interested in a traditional life settlement, retained benefit option, or a hybrid option, Abacus Life can help you identify the right option for your circumstances.
Why Would Someone Consider a Life Settlement:
Over the past decade, the market has become incredibly well regulated. The entire life settlement market is regulated on a state-by-state basis instead of nationally. Therefore, the responsibility falls on each state’s government to make sure that companies are behaving ethically. The majority of states do require specific licensing and practice strict oversight to ensure customer safety. Accordingly here at Abacus Life, we are proud to share that we are licensed for life and viatical settlements in many different states. Whoever you choose to work with, you should make sure they follow the correct guidelines.
However, it is easy to find out how much your policy is worth! In as little as 24 business hours, we can provide you with a policy valuation, and it’s as simple as filling out our online calculator by clicking here. We don’t believe that you should have to wait the industry standard 45-60 days for life-saving treatment.
Selling your life insurance policy allows you to focus on what is most important to you, financial well-being.
“Fantastic people to work with. Every aspect of the case was executed professionally and the insured’s policy was strongly valued.” – David Sluss, CLU, ChFC
In 1911, Life Insurance was deemed personal property by the United States Supreme Court. In other words, just like your house or car, you have the legal right to sell your life insurance policy. While you can choose to surrender your policy back to your life insurance company, you will only receive a portion of what your policy is worth, leaving cash on the table.
On average, Abacus Life pays out 6-8x more than the cash surrender value of a life insurance policy, putting more money in your pocket.